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Why Did My Cannabis Bank Close My Account?
Cannabis bank accounts can be closed due to compliance risk, ownership changes, cash activity irregularities, METRC mismatches, or sponsor bank exits. This page explains why closures happen and what they mean.
What This Page Covers
- The most common reasons cannabis accounts are closed
- The difference between monitoring and termination
- What typically happens before closure
- What to review if your account is restricted
The Short Answer
Cannabis bank accounts are conditional.
Banks monitor:
- Ownership structure
- Cash patterns
- Inventory-to-revenue consistency
- Public marketing behavior
- Regulatory risk exposure
If risk exceeds tolerance, the bank may exit the relationship.
Common Reasons for Closure
1. Undisclosed Ownership Changes
New investors, equity transfers, or control changes not reported to the bank.
2. Cash Activity That Raises AML Concerns
Deposit patterns inconsistent with sales volume.
Repeated deposits structured near reporting thresholds.
3. METRC and Revenue Mismatch
Inventory tracking that does not align with reported revenue or deposits.
4. Sponsor Bank Exit
Sometimes the bank itself leaves the cannabis sector.
Accounts close regardless of store performance.
5. Elevated Compliance Risk
Marketing claims, interstate implications, or activity suggesting federal violations.
What Happens During Closure
- Processing may be suspended
- Deposits may be restricted
- Funds may be temporarily held
- Written notice may follow
Closure is often preceded by monitoring inquiries.
Related Pages
- Can Banks see METRC Data?
- What Is a Suspicious Activity Report (SAR)?
- What Triggers a Bank to Shut You Down?
- Cannabis Banking Rules
